South Africa: Where to Buy

Overview

Foreigners buy property in all parts of South Africa. For example, people wanting to get away from it all and commune with nature might opt for an isolated farmhouse in the semi-desert Karoo area in the middle of the country or a cottage near one of South Africa’s many wildlife parks. However, the great majority of foreigners buy property in the three areas detailed below.

Potential buyers should note that South Africa’s planning regulations, although strict in theory, aren’t properly enforced in many areas and some property developers, in their eagerness to cash in on the country’s booming property market, ignore the rules, banking on the fact that many small municipalities don’t have enough staff to police building in their area. It’s proving difficult for the government to remedy this situation centrally, as the constitution devolves planning jurisdiction to provinces and municipalities. The result is that a few areas – notably parts of the coast near Cape Town and Durban – are in danger of overdevelopment.

Cape Town

The Cape Town area is the most popular part of South Africa with foreign buyers, despite recent price increases. It offers a wide choice of property type and suburb, from rambling mansions in leafy, rural Constantia, to cottages overlooking deserted beaches on the Cape Peninsula or penthouse apartments in central Cape Town’s vibrant V & A Waterfront.

City Bowl

The centre of Cape Town is called the City Bowl, and it has some attractive residential areas, including increasingly trendy Bo-Kaap, with its distinctive, colourful Cape Malay properties and Muslim community. Only a decade ago you could buy a small house or apartment in Bo-Kaap for as little as R40,000 (£3,500), but gentrification of the area and an influx of ‘yuppie’ buyers have seen the value of such properties skyrocket to around R1 million (£87,000).

Gardens Suburb

South of the City Bowl lies the Gardens suburb, close to Long Street and Kloof Street, with some of the city’s best restaurants and the location of the world-famous Mount Nelson Hotel, at which taking Sunday tea is a Cape Town institution (if you can find a table). Apartments and small houses cost in the range of R745,000 (£64,780) to R1.95 million (£169,565).

Waterfront

The V & A Waterfront (invariably known simply as ‘the Waterfront’) lies just north of the centre of Cape Town. Once a run-down harbour area, it has been transformed into a tourist magnet, with shops, bars, restaurants, an aquarium and much else and is now one of the most sought-after parts of the city, with plenty of security, making it safe to walk around at night. But you pay a price for the privilege: a modern, spacious, well-appointed, three-bedroom, two-bathroom apartment with three terraces, offering views of the sea and Table Mountain costs from around R4.5 million (£390,000), and you must pay even more if you want a prime spot with a mooring for your boat. Development is continuing at the Waterfront, with more exclusive apartment blocks being built (some on reclaimed land) and plans by the entrepreneur Sol Kerzner to build a ‘six-star’ hotel next to the impressive Two Oceans Aquarium.

Northern Suburbs

To the north and north-west of Cape Town lie the Northern suburbs, which currently offer some of the region’s more affordable property. The Blaauwberg area (incorporating Parklands and Table View) is South Africa’s fastest-growing coastal suburb, only a 15-minute drive north of Cape Town on the Atlantic coastline. It has classic views of Table Mountain (which are much used in postcards) and its Canal Walk shopping centre is one of the best in South Africa. A three-bedroom, two-bathroom apartment in a prime beachfront location costs around R1.75 million (£152,000), and property is much cheaper in less popular locations set back from the coast. Nearby Bellville – a quiet, residential suburb with easy access to Cape Town and the Winelands – is another attractive place to buy, where you can buy a basic, one-bedroom, one-bathroom apartment for R273,000 (£23,750).

Green Point & Sea Point

To the west of Cape Town, on the Atlantic side of the Cape Peninsula, is Green Point, slightly set back from the coast, with a ‘backpacker’ feel to it. Further on is Sea Point, a large suburb hugging the coast (walking along the promenade is popular with people from all over the Peninsula), with many blocks of high-rise apartments making it one of Cape Town’s most densely populated areas. Sea Point has a hint of the British resort Brighton about it and in recent years it has had problems with drugs and prostitution, but these are now being addressed. It’s only a few minutes from the centre of Cape Town and, as well as plenty of beachfront apartments, there are large family homes on the slopes of Signal Hill. A three-bedroom, three-bathroom, two-reception room house with a large garden and swimming pool costs from around R1.6 million (£140,000).

Clifton & Camp’s Bay

South of Sea Point lie the upmarket Clifton and Camp’s Bay areas, offering some of the most sought-after property in South Africa, particularly Camp’s Bay. Both are classy seaside towns, with a Mediterranean Riviera feel and impressive beaches, although the sea off the Atlantic coast is cold even at the height of summer. Both resorts enjoy an imposing mountain backdrop of Table Mountain, the Lion’s Head and the Twelve Apostles hills, and both specialise in large, luxurious houses, with prices in the region of R6 million (£520,000) to R15 million (£1.3 million) or more. (Clifton boasts the most expensive apartment ever sold on the Atlantic seaboard, at R25 million/over £2 million.)

Llandudno

Further down a stretch of otherwise undeveloped west coast and 20km (12.5mi) from Cape Town is Llandudno (pronounced, unlike the Welsh town, ‘lindidno’), a small, exclusive seaside community with some of the area’s most expensive property and close to Cape Town’s main nudist beach. There’s only one access road to Llandudno and plenty of competition when any of its limited number of properties come on the market. Prices vary according to the size and quality of the house, but expect to pay between R5 million (£435,000) and R10 million (£870,000) for a three-bedroom, three-bathroom house, and much more for a well-sited, larger property.

Hout Bay

Beyond Llandudno, Hout Bay is a bigger town and a working harbour, with an impressive setting on a large bay, enjoying spectacular views towards the Chapman’s Peak Drive, a 10km (6.25mi) road cut into the mountains. Hout Bay has a laid-back, village feel, with plenty of bistros, guesthouses and art and nautical shops, but is within easy reach of Cape Town. You can buy a one-bedroom, one-bathroom apartment in a new block for R675,000 (£59,000) or a three-bedroom, two-bathroom house for R1.4 million (£120,000); a larger property in a prime location costs around R7 million (£600,000).

Noordhoek

Further down the west coast is Noordhoek, a village with a rural atmosphere and great setting – spread out along a beautiful beach – and also within easy reach of central Cape Town. An impressive family home with five bedrooms, three bathrooms, three reception rooms, two garages, a guest cottage and staff accommodation will cost around R3.25 million (£283,000).

Pinelands

To the east of central Cape Town is Pinelands, a well-established suburb very close to the city but with a park-like feel (the name, unsurprisingly, comes from the area’s many pine trees). This is a luxurious suburb, with plenty of impressive properties on large plots, with thatched roofs a local speciality. Despite its convenient location – just off the N2 road between central Cape Town and the airport – and quiet, leafy ambience, property isn’t outrageously priced. A three-bedroom, one-bathroom, two-reception room house with a swimming pool costs from around R1.4 million (£120,000). A sprawling property with five bedrooms, three bathrooms, four reception rooms and a large garden costs from around R2.15 million (£187,000).

Southern Suburbs

South of Pinelands lie the exclusive Southern Suburbs of Cape Town, including Claremont, Constantia, Kenilworth, Mowbray, Observatory, Rondebosch and Wynberg – an area whose former residents include Earl Spencer (Princess Diana’s brother) and Sir Mark Thatcher (Lady Thatcher’s son). At their heart is the upmarket suburb of Newlands, with its many oak trees, spectacular views of Table Mountain, a world-famous sports stadium (for rugby and cricket) and the site of the University of Cape Town. Although only 10 or 15 minutes by car from central Cape Town, the Southern Suburbs are quiet, leafy and almost rural. They’re home to the impressive semi-wilderness area of the Kirstenbosch Botanical Gardens (www.kirstenbosch.co.za), with over 5,000 plant species set in gardens spread over Table Mountain’s lower slopes.

There are some apartments and townhouses in the area, but many of the properties are large, luxurious villas, with landscaped gardens and top-notch security. A modest, three-bedroom, two-bathroom bungalow costs from around R1.9 million (£165,000), and a four-bedroom house with two bathrooms ranges from R2 million (£174,000) to R5 million (£435,000). Larger, top-range houses can easily cost over R20 million (£1.75 million).

East Cape Coast

Moving to the east coast of the Cape Peninsula (the False Bay side, where the water is several degrees warmer than on the Atlantic side), Strand and Gordon’s Bay are popular, with their coastal location and good access to central Cape Town, the airport and the Winelands to the north. The drive to the east from Gordon’s Bay to Hermanus is one of South Africa’s most scenic. Prices reflect the area’s popularity: a luxury, sprawling, three-bedroom beachfront apartment can cost R6.5 million (£565,000), but you can buy a huge, five-bedroom, five-bathroom house away from the most popular streets for under R4 million (£350,000).

Muizenberg

At the north-west corner of False Bay, around 25km (15mi) south of Cape Town, lies Muizenberg. It has a spectacular setting on a massive beach (which is popular with surfers), with great views across the Bay and down the Peninsula mountain chain, although the town is slightly scruffy, which is reflected in property prices: you can buy a one-bedroom apartment for R400,000 (£35,000), a large, two-bedroom, two-bathroom apartment in a reasonable setting costs around R1.25 million (£110,000), and a spacious three-or four-bedroom house is around R1.75 million (£150,000). There are plans to upgrade and beautify the town, so property prices might increase.

Fish Hoek

South of Muizenberg lies the seaside town of Fish Hoek, nestled at the foot of the mountains, overlooking one of the Peninsula’s better beaches. Fish Hoek is attracting plenty of international buyers despite a reputation for dullness. It’s a popular spot for whale-watching (between June and December), and there’s a rail service to Cape Town, which may be an attraction for commuters, although rail travel isn’t always safe in South Africa. You can buy a five-bedroom, four-bathroom, three-reception room seaside mansion for around R3.5 million (£300,000), and a similar property in a location set back from the coast costs R1.95 million (£170,000). If you want something more modest, an immaculate, two-bedroom, two-bathroom apartment costs around R1.1 million (£95,000).

Simon’s Town

Halfway down the False Bay side of the Peninsula lies Simon’s Town (sometimes written as Simonstown), famous as a naval base and the location of Boulders Beach, with its colony of penguins (it’s odd to see these ‘Antarctic’ birds basking in the strong South African sun!). The town has plenty of historical properties and large, exclusive homes and isn’t raucous like some naval bases, but a pretty, relaxed place (except for the dockyard itself). A two-bedroom, two-bathroom apartment costs around R750,000 (£65,000), a three-bedroom, two-bathroom townhouse R1.35 million (£117,000) and you will pay between R2.5 million (£217,000) and R5 million (£435,000) for a luxurious four- or-five-bedroom house.

Winelands

To the east and north-east of Cape Town lie the Winelands, containing many of South Africa’s oldest and best wineries, most within a 60km (37mi) radius of Cape Town. It’s a beautiful region of impressive hills and rolling valleys decked with rows of vines (which are particularly striking in the autumn when the leaves change colour), with some of South Africa’s most appealing towns, notably Stellenbosch and Franschhoek. The former is an elegant town full of oak trees and is the site of a university, giving it the feel of an American collegiate town. It’s generally safe to walk around at night and enjoy the many bars and eateries. Much smaller Franschhoek enjoys a spectacular setting, dominated by three mountains, and has carved itself a niche as the region’s culinary capital. Both are attracting a lot of interest from foreign buyers.

Prices in the Winelands vary with location, and favoured spots in town within walking distance of the facilities are at a premium. For example, you can buy an attractive three- or-four-bedroom house on the outskirts of one of the region’s towns or in the countryside for R1.4 million (£120,000) – you pay a lot more for a large, luxury house with gardens, swimming pools, guest quarters etc.), but an upmarket, two-bedroom apartment in the centre of Stellenbosch costs around R1.7 million (£148,000). At the other end of the scale, a large Cape Dutch architectural gem (see Types of Property Fact Sheet) with plenty of land can cost at least R20 million (£1.75 million).

South Coast

The south coast, i.e. the coasts of the Western Cape and Eastern Cape, is another popular area with foreign buyers – particularly along the so-called Garden Route, which is the stretch of coast between Mossel Bay and Storms River Mouth, running through George, Knysna and Plettenburg Bay in Western Cape and on to Port Elizabeth in Eastern Cape (although definitions of what constitutes the Garden Route vary).

Gansbaai

A two-hour drive east of Cape Town is Gansbaai (Goose Bay), which estate agents reckon to be among the top ten places to invest in property in South Africa. It’s a working town, with an active harbour, and boasts spectacular sea and mountain views, whale-watching between June and December and even cage diving to see great white sharks, which gather off the appropriately-named Danger Point. Prices here are lower than in much of the Cape Town region and you can buy a five-bedroom, four-bathroom house for R1.5 million (£130,000).

Stilbaai & Jongensfontein

Further along the coast are the towns of Stilbaai and Jongensfontein, just off the N2 road and around an hour from George airport. The surrounding area is beautiful and tranquil, with plenty of vacant land ready for development. A two-bedroom, two-bathroom, two-reception room house costs around R850,000 (£74,000), four-bedroom, two-bathroom houses are available for R1.25 million (£110,000) and a sprawling mansion in the best location can be had for under R3 million (£250,000).

Mossel Bay

Mossel Bay is 400km (250mi) east of Cape Town and has gained an unfavourable reputation in South Africa as an ugly industrial place. But this is undeserved because the town also has an attractive historic centre and a good beach. You can buy a three-bedroom, one-bathroom apartment near the beach for around R680,000 (£60,000), while a three-bedroom, two-bathroom apartment in a prime beachfront position costs R900,000 (£78,000). A three-bedroom house in town costs between R1.5 million (£130,000) and R2.5 million (£217,500), but if you move into the surrounding countryside, you can buy an isolated four-bedroom, four-bathroom house in a nature reserve for as little as R500,000 (£43,500).

George

George is a working town, inland of the Garden Route, and even its inhabitants wouldn’t describe it as beautiful, but it has an airport and is a good base for exploring the surrounding area, much of which is beautiful. You can buy a one-bedroom apartment in the centre of the business district for R345,000 (£30,000), or a large three-bedroom, two-bathroom house from around R750,000 (£65,000). A stylish, architect-designed house with three bedrooms, three bathrooms, four reception rooms and a swimming pool can be yours for around R1.85 million (£160,000), although the George area also has some very expensive properties (R20 million/£1.75 million and above).

Knysna

Knysna (pronounced ‘nize-na’) is 100km (62mi) east of Mossel Bay, roughly at the halfway point of the Garden Route. It doesn’t have a beach but sits in an attractive hilly setting overlooking a lagoon, close to impressive forests, and has an arty feeling, with some attractive Georgian and Victorian buildings. Three-bedroom, two-bathroom houses in Knysna cost between R900,000 (£78,000) and R2 million (£174,000).

Plettenberg Bay

Plettenberg Bay lies 33km (20mi) east of Knysna and is probably the glitziest of the Garden Route resorts, popular with Johannesburg’s wealthier citizens. The town itself is pleasant rather than remarkable but the views across the bay are stunning. A two-bedroom, one-bathroom apartment costs around R675,000 (£59,000), a three-bedroom, three-bathroom apartment around R900,000 (£78,000), and a well appointed four-bedroom house from R2 million (£174,000). Plettenberg Bay also boasts some luxurious mansions, selling at around R22 million (£1.9 million).

St Francis Bay

Just across the border in the Eastern Cape (where increasing numbers of buyers are looking, having decided that the Western Cape is overpriced) is St Francis Bay, a small resort built around a series of canals and waterfront developments. Some people regard it as a heavenly place, others see it as plastic and sterile. A three-bedroom, two-bathroom house away from the water costs around R650,000 (£56,500), and a two-bedroom, one-bathroom house in the port area costs around R800,000 (£70,000). Four- and five-bedroom properties in waterfront positions cost between R2 million (£174,000) and R6 million (£520,000).

Jeffreys Bay

Jeffreys Bay lies 75km (47mi) west of Port Elizabeth and is a small town surrounded by nature reserves, game parks and waterfalls, which compensate for the fact that the town itself is overdeveloped. It’s known for surfing and the quantity and quality of the seashells that wash up on its beach, and it attracts many holidaymakers and retirees. A two-bedroom, one-bathroom, two-reception room house costs around R475,000 (£41,000), and a luxurious seafront apartment with five bedrooms and four bathrooms can be bought for around R3.78 million (£330,000).

Port Elizabeth

Port Elizabeth – the ‘official’ end of the Garden Route – is the largest coastal city in the Eastern Cape (see above). You can buy a two-bedroom townhouse for around R380,000 (£33,000), a modest three-bedroom, two-bathroom house for R750,000 (£65,000) and a four-bedroom, three-bathroom house near the beach for R1.6 million (£139,000).

Kenton-On-Sea

East of Port Elizabeth, on the so-called ‘Sunshine Coast’, lies Kenton-on-Sea, an unspoiled town with a pleasant climate and attractive sea and river views, near to game reserves. A three-bedroom, one-bathroom house costs around R850,000 (£74,000), four-bedroom, two-bathroom houses are around R1.1 million (£95,650), and you can have a five-bedroom property for under R2 million (£173,910).

East London

East London has seen an increase in the number of foreign property buyers, put off the Western Cape by price increases and cool winters, and wanting to avoid the Durban area’s summer humidity. Small apartments can be bought for as little as R250,000 (£21,750), while R1 million (£87,000) will buy you a substantial family home.

East Coast

The east coast of South Africa, to the north and south of Durban in Kwazulu-Natal, is the third area popular with foreign property buyers. The coast to the south of Durban is sometimes called the South Coast or the Hibiscus Coast, and the coast to the north the North Coast or the Dolphin Coast.

Amanzimtoti

The attractive seaside town of (Zulu for ‘sweet waters’), 25km (15mi) south of Durban, is popular with holidaymakers and commuters and famed for its excellent beaches. A basic three-bedroom house costs around R360,000 (£31,000), an immaculate two-bedroom, two-bathroom apartment is around R590,000 (£51,000), an upmarket, three-bedroom house with a swimming pool R920,000 (£80,000) and an exclusive, beachfront house with four bedrooms, three bathrooms and four reception rooms will set you back R3.5 million (£300,000).

Hibberdene

Hibberdene is a 45-minute drive south of Durban and the airport. It’s known as the ‘gateway to the Hibiscus Coast’ and, as well as a wide range of different types of residential property, it offers retirement complexes and plenty of golf courses. You can buy a smart two-bedroom, two-bathroom house for R400,000 (£35,000) and a five-bedroom house can cost as little as R650,000 (£56,500), but three to five times as much in a prime location.

Port Shepstone

Port Shepstone, the largest town on the South Coast, is the administrative and commercial centre of the area, known for its Norwegian community. Property prices are modest and you can buy a four-bedroom, two-bathroom house for R665,000 (£58,000).

Uvongo

Uvongo is a bustling, year-round holiday town with a magnificent beach and a reef 7km (4.3mi) offshore that’s one of the world’s premier shark-viewing spots. A one-bedroom apartment costs around R400,000 (£35,000), a three-bedroom, three-bathroom townhouse can be had from around R600,000 (£52,000), R1 million (£87,000) buys a reasonable three-or-four-bedroom house, and R3.5 million (£300,000) will get you a top-of-the-range five-bedroom, four-bathroom, four-reception room house near the beach.

Margate

Just 12km (7.5mi) south of Uvongo is Margate, the South Coast’s tourist centre and a popular holiday destination with the citizens of Johannesburg. A basic, one-bedroom apartment costs from around R380,000 (£33,000), three-bedroom houses start at R550,000 (£48,000) and you can buy a luxurious, four-bedroom townhouse for R900,000 (£78,000).

Durban North & Umhlanga Rocks

To the north of Durban, Durban North and Umhlanga Rocks merge to form a premier seaside area, with a 3km (1.85mi) promenade and some of the best homes on the North Coast. This is a tranquil region of coastal forests, game parks, golf courses and beaches. A three-bedroom, two-bathroom, two-reception room house with a garden and swimming pool costs around R1.35 million (£117,500), and a five-bedroom, four-bathroom, four-reception room house costs around R4 million (£350,000).

Ballito

Ballito is 45km (28mi) north of Durban and is known as the ‘Pearl of the Dolphin Coast’. It’s a friendly resort with a village atmosphere set inland from the coast and surrounded by sugarcane fields. A smart, three-bedroom, two-bathroom apartment costs around R1.1 million (£95,000), and a three-bedroom, two-bathroom house with a double garage and a swimming pool costs R1.65 million (£143,500).

Westville

If you want to escape the holidaymakers and party atmosphere of the coast, Westville is a quite, commuter town, a 15-minute drive inland from Durban. Your money goes a long way there: a luxury property with four bedrooms, three bathrooms and four reception rooms is yours for around R2.2 million (£190,000).

© Survival Books Limited 2005

“Buying a Home in South Africa” 1st Edition, Graeme Chesters.

Reproduced with the permission of Survival Books Limited.

Further information on this topic can be found in “Buying a Home in South Africa” 1st edition, by Graeme Chesters.

For extensive information about buying a property in South Africa, you can purchase this book at www.survivalbooks.net